{"id":170229,"date":"2023-01-28T05:38:08","date_gmt":"2023-01-28T05:38:08","guid":{"rendered":"https:\/\/precoinnews.com\/?p=170229"},"modified":"2023-01-28T05:38:08","modified_gmt":"2023-01-28T05:38:08","slug":"spy-still-on-top-as-etfs-turn-30","status":"publish","type":"post","link":"https:\/\/precoinnews.com\/markets\/spy-still-on-top-as-etfs-turn-30\/","title":{"rendered":"SPY Still on Top as ETFs Turn 30"},"content":{"rendered":"

This week marks the 30th birthday of SPDR S&P 500 ETF Trust (SPY), the first-ever U.S. exchange-traded fund that ignited a new asset class and brought diversified portfolios to the masses.\u00a0<\/span><\/p>\n

Three decades later, the revolution is still going strong. The U.S. is now home to over 3,000 ETFs. While simple index funds that track the market still lead the pack, the ecosystem has evolved dramatically, spawning ever more themed, leveraged, and inversed funds that offer intricately niche trading strategies.\u00a0\u00a0<\/span><\/p>\n

ETFs have found broad appeal among retail investors as a low-fee, tax-efficient alternative to the traditional mutual fund. They are custom-made investment vehicles for a passive \u201cbuy the market\u201d strategy that can deliver outsized gains for investors who can stay the course over a multi-decade time horizon.<\/span><\/p>\n

\u201cAt the time, it was not a watershed moment, but it’s now hard to imagine investing without ETFs,\u201d Todd Rosenbluth, an industry veteran and head of research at VettaFi, <\/span>told the Wall Street Journal<\/span>. \u201cA whole generation of investors only thinks about using ETFs to get diversified exposure. They’ve opened up markets that previously were harder to obtain access to.\u201d<\/span><\/p>\n

It took State Street Global Advisors (SSGA) three years to convince the U.S. Securities and Exchange Commission to give its experimental fund the green light. Even after it hit the market, the reception on Wall Street was lukewarm. After a slow period in <\/span>which management considered delisting<\/span>, SPY finally found its feet and crossed $1 billion in assets under management (AUM) in 1996. Fast forward to today, and the fund manages $371 billion in assets.\u00a0<\/span><\/p>\n

Still on Top\u00a0<\/b><\/p>\n

Thirty years since SPY set sail, it remains a revered pioneer and the nominal figurehead of the industry, what <\/span>Financial Times’ Robin Wigglesworth<\/span> has dubbed the industry’s \u201cHelen of Troy\u201d as the \u201cfund that launched a thousand ETFs.\u201d\u00a0<\/span><\/p>\n

Yet the ETF battlefield is becoming increasingly contested between the two industry titans, Vanguard and Blackrock, which <\/span>Bloomberg’s Eric Balchunas<\/span> describes as the \u201cKing Kong and Godzilla\u201d of the ETF world.\u00a0<\/span><\/p>\n

As investment firms, both Vanguard and Blackrock have more in total AUM, though State Street’s SPY remains the largest single fund.\u00a0<\/span><\/p>\n

Blackrock’s iShares Core S&P 500 ETF (IVV) and Vanguard’s S&P 500 ETF (VOO) also track the S&P 500 index and do it on the cheap. Their Total Expense Ratio is 0.03% \u2013 less than a third the cost of SPY’s, at 0.945%.<\/span><\/p>\n

By undercutting Street State on fees, Blackrock and Vanguard’s S&P trackers are closing in, but Vanguard is catching up fastest. Over the past twelve months, $44 billion has flowed to VOO and $27 billion to IVV, while SPY has brought in just $3 billion, <\/span>according to ETFLogic<\/span>. IVV is currently at around $300 billion AUM, while VOO is slightly further back, at around $270 billion.<\/span><\/p>\n

ETF Takeover\u00a0<\/b><\/p>\n

Regardless of who’s on top, there is still room for the whole industry to grow. Despite the broad stock market route in 2023, investors still <\/span>poured $867 billion into ETFs<\/span>, and diverted a record $950 billion away from mutual funds.\u00a0<\/span><\/p>\n

Beating out mutual funds won’t happen overnight, though. While ETFs had $6.5 trillion in assets by the end of last year, mutual funds still controlled $16.3 trillion.\u00a0<\/span><\/p>\n

SPY’s thirty-year anniversary is an ideal milestone to look back on all it has achieved.<\/span><\/p>\n

Since its inception, SPY has clocked an average annual total return of 9.53%. In the past 30 years, the price of the SPY fund has climbed from around $43.61 to $400.93. An initial $1,000 investment in SPY in January 1993, with dividends reinvested, would now be worth around $17,437.<\/span><\/p>\n

This article was produced by and syndicated by\u00a0Wealth of Geeks.<\/p>\n

Sponsored: Find a Qualified Financial Advisor<\/b><\/p>\n

Finding a qualified financial advisor doesn’t have to be hard. SmartAsset’s free tool matches you with up to 3 fiduciary financial advisors in your area in 5 minutes. Each advisor has been vetted by SmartAsset and is held to a fiduciary standard to act in your best interests. If you’re ready to be matched with local advisors that can help you achieve your financial goals, get started now.<\/p>\n

Source: Read Full Article<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

This week marks the 30th birthday of<\/p>\n","protected":false},"author":3,"featured_media":170228,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[23054],"tags":[],"yoast_head":"\nSPY Still on Top as ETFs Turn 30 - Pre Coin News<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/precoinnews.com\/markets\/spy-still-on-top-as-etfs-turn-30\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"SPY Still on Top as ETFs Turn 30 - Pre Coin News\" \/>\n<meta property=\"og:description\" content=\"This week marks the 30th birthday of\" \/>\n<meta property=\"og:url\" content=\"https:\/\/precoinnews.com\/markets\/spy-still-on-top-as-etfs-turn-30\/\" \/>\n<meta property=\"og:site_name\" content=\"Pre Coin News\" \/>\n<meta property=\"article:published_time\" content=\"2023-01-28T05:38:08+00:00\" \/>\n<meta name=\"author\" content=\"mediabest\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:image\" content=\"https:\/\/precoinnews.com\/wp-content\/uploads\/2023\/01\/SPY-Still-on-Top-as-ETFs-Turn-30.jpg\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"mediabest\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"3 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"WebPage\",\"@id\":\"https:\/\/precoinnews.com\/markets\/spy-still-on-top-as-etfs-turn-30\/\",\"url\":\"https:\/\/precoinnews.com\/markets\/spy-still-on-top-as-etfs-turn-30\/\",\"name\":\"SPY Still on Top as ETFs Turn 30 - Pre Coin News\",\"isPartOf\":{\"@id\":\"https:\/\/precoinnews.com\/#website\"},\"datePublished\":\"2023-01-28T05:38:08+00:00\",\"dateModified\":\"2023-01-28T05:38:08+00:00\",\"author\":{\"@id\":\"https:\/\/precoinnews.com\/#\/schema\/person\/ad0e9920e03d3b41c7ad02a18375d76a\"},\"breadcrumb\":{\"@id\":\"https:\/\/precoinnews.com\/markets\/spy-still-on-top-as-etfs-turn-30\/#breadcrumb\"},\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"ReadAction\",\"target\":[\"https:\/\/precoinnews.com\/markets\/spy-still-on-top-as-etfs-turn-30\/\"]}]},{\"@type\":\"BreadcrumbList\",\"@id\":\"https:\/\/precoinnews.com\/markets\/spy-still-on-top-as-etfs-turn-30\/#breadcrumb\",\"itemListElement\":[{\"@type\":\"ListItem\",\"position\":1,\"name\":\"Home\",\"item\":\"https:\/\/precoinnews.com\/\"},{\"@type\":\"ListItem\",\"position\":2,\"name\":\"Markets\",\"item\":\"https:\/\/precoinnews.com\/category\/markets\/\"},{\"@type\":\"ListItem\",\"position\":3,\"name\":\"SPY Still on Top as ETFs Turn 30\"}]},{\"@type\":\"WebSite\",\"@id\":\"https:\/\/precoinnews.com\/#website\",\"url\":\"https:\/\/precoinnews.com\/\",\"name\":\"Pre Coin News\",\"description\":\"precoinnews.com\",\"potentialAction\":[{\"@type\":\"SearchAction\",\"target\":{\"@type\":\"EntryPoint\",\"urlTemplate\":\"https:\/\/precoinnews.com\/?s={search_term_string}\"},\"query-input\":\"required name=search_term_string\"}],\"inLanguage\":\"en-US\"},{\"@type\":\"Person\",\"@id\":\"https:\/\/precoinnews.com\/#\/schema\/person\/ad0e9920e03d3b41c7ad02a18375d76a\",\"name\":\"mediabest\",\"image\":{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\/\/precoinnews.com\/#\/schema\/person\/image\/\",\"url\":\"https:\/\/secure.gravatar.com\/avatar\/f5f13cb3b94fc348d515c0951f6ca073?s=96&d=mm&r=g\",\"contentUrl\":\"https:\/\/secure.gravatar.com\/avatar\/f5f13cb3b94fc348d515c0951f6ca073?s=96&d=mm&r=g\",\"caption\":\"mediabest\"}}]}<\/script>\n<!-- \/ Yoast SEO plugin. -->","yoast_head_json":{"title":"SPY Still on Top as ETFs Turn 30 - Pre Coin News","robots":{"index":"index","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"canonical":"https:\/\/precoinnews.com\/markets\/spy-still-on-top-as-etfs-turn-30\/","og_locale":"en_US","og_type":"article","og_title":"SPY Still on Top as ETFs Turn 30 - Pre Coin News","og_description":"This week marks the 30th birthday of","og_url":"https:\/\/precoinnews.com\/markets\/spy-still-on-top-as-etfs-turn-30\/","og_site_name":"Pre Coin News","article_published_time":"2023-01-28T05:38:08+00:00","author":"mediabest","twitter_card":"summary_large_image","twitter_image":"https:\/\/precoinnews.com\/wp-content\/uploads\/2023\/01\/SPY-Still-on-Top-as-ETFs-Turn-30.jpg","twitter_misc":{"Written by":"mediabest","Est. reading time":"3 minutes"},"schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"WebPage","@id":"https:\/\/precoinnews.com\/markets\/spy-still-on-top-as-etfs-turn-30\/","url":"https:\/\/precoinnews.com\/markets\/spy-still-on-top-as-etfs-turn-30\/","name":"SPY Still on Top as ETFs Turn 30 - Pre Coin News","isPartOf":{"@id":"https:\/\/precoinnews.com\/#website"},"datePublished":"2023-01-28T05:38:08+00:00","dateModified":"2023-01-28T05:38:08+00:00","author":{"@id":"https:\/\/precoinnews.com\/#\/schema\/person\/ad0e9920e03d3b41c7ad02a18375d76a"},"breadcrumb":{"@id":"https:\/\/precoinnews.com\/markets\/spy-still-on-top-as-etfs-turn-30\/#breadcrumb"},"inLanguage":"en-US","potentialAction":[{"@type":"ReadAction","target":["https:\/\/precoinnews.com\/markets\/spy-still-on-top-as-etfs-turn-30\/"]}]},{"@type":"BreadcrumbList","@id":"https:\/\/precoinnews.com\/markets\/spy-still-on-top-as-etfs-turn-30\/#breadcrumb","itemListElement":[{"@type":"ListItem","position":1,"name":"Home","item":"https:\/\/precoinnews.com\/"},{"@type":"ListItem","position":2,"name":"Markets","item":"https:\/\/precoinnews.com\/category\/markets\/"},{"@type":"ListItem","position":3,"name":"SPY Still on Top as ETFs Turn 30"}]},{"@type":"WebSite","@id":"https:\/\/precoinnews.com\/#website","url":"https:\/\/precoinnews.com\/","name":"Pre Coin News","description":"precoinnews.com","potentialAction":[{"@type":"SearchAction","target":{"@type":"EntryPoint","urlTemplate":"https:\/\/precoinnews.com\/?s={search_term_string}"},"query-input":"required name=search_term_string"}],"inLanguage":"en-US"},{"@type":"Person","@id":"https:\/\/precoinnews.com\/#\/schema\/person\/ad0e9920e03d3b41c7ad02a18375d76a","name":"mediabest","image":{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/precoinnews.com\/#\/schema\/person\/image\/","url":"https:\/\/secure.gravatar.com\/avatar\/f5f13cb3b94fc348d515c0951f6ca073?s=96&d=mm&r=g","contentUrl":"https:\/\/secure.gravatar.com\/avatar\/f5f13cb3b94fc348d515c0951f6ca073?s=96&d=mm&r=g","caption":"mediabest"}}]}},"_links":{"self":[{"href":"https:\/\/precoinnews.com\/wp-json\/wp\/v2\/posts\/170229"}],"collection":[{"href":"https:\/\/precoinnews.com\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/precoinnews.com\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/precoinnews.com\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/precoinnews.com\/wp-json\/wp\/v2\/comments?post=170229"}],"version-history":[{"count":0,"href":"https:\/\/precoinnews.com\/wp-json\/wp\/v2\/posts\/170229\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/precoinnews.com\/wp-json\/wp\/v2\/media\/170228"}],"wp:attachment":[{"href":"https:\/\/precoinnews.com\/wp-json\/wp\/v2\/media?parent=170229"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/precoinnews.com\/wp-json\/wp\/v2\/categories?post=170229"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/precoinnews.com\/wp-json\/wp\/v2\/tags?post=170229"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}